what enables effective international climate finance in the context of development co-operation?...
TRANSCRIPT
What enables effective international climate finance in the context of development
co-operation?Results from an OECD Survey*
Presentation by Stephanie OckendenEconomist/Policy AnalystDevelopment Co-operation Directorate, OECD
*Source: Zou and Ockenden (forthcoming 2013)
• Background – Climate Finance Effectiveness: Paris & Busan.
– Rational for survey & approach
• Key insights from our survey– Common understanding on pre-conditions
– Areas of divergent views
• Summary
Introduction:
Climate finance is the means to the end; impacts and effectiveness are key…
Busan Partnership for Effective Development
Co-operation commitment on climate finance
* Source: The Paris Declaration “Pyramid” , OECD.** Source: Paragraph 34, Busan Partnership for Effective Development Co-operation, December 2011.
Aid Effectiveness & Paris Declaration Principles
• Support national climate change policy and planning
• Where appropriate – using national country systems
• Share lessons
What enables effective international climate finance in the context of development co-operation?
Climate finance has many dimensions :
Variety of
levels
Range of
Sources
Range of Stakeholders
•Recipients, Providers, Supporters
•Climate & development communities
•CSO & Private sector
• Domestic• Domestic• International
development finance
• Private• New & Innovative
• International• National• Local• Project
Survey: 32 stakeholders (recipients, providers and supporters) from across the
climate and development community
• Background – Climate Finance Effectiveness: Paris & Busan.
– Rational for survey & approach
• Key insights from our survey– Common understanding on pre-conditions
– Areas of divergent views
• Summary
Introduction:
Insights from survey: Significant common understanding on pre-conditions for effectiveness related to developing and using country systems:
Recipients Providers Supporters
1) National climate change plans and strategies, mainstreaming climate change into development and aligning finance behind national priorities
2) In-country co-ordination across ministries, setting roles and responsibilities and co-ordination across donors
3) Establishing tracking and monitoring systems and feasibility of using country systems to channel climate finance (i.e. budget support)
Monitoring results
4) Capacity building: Country access and readiness to absorb finance channelled through international climate funds
5) Engagement with civil society, local government and the private sector
Tracking finance flows
Channeling through country systems
*Source: Zou and Ockenden (2013)
Challenges and opportunities with using country systems – driving divergences:
*Source: Zou and Ockenden (2013)
Absence of national climate change plans and limited readiness
is a barrier
Issues of knowledge, awareness and
attitudes
Barriers & Challenges:
Donor’s – high priority to track climate finance general budget
support may not always be a feasible modality
Emergence of extra-budgetary National
Climate Funds, Regional and Global
Funds
Duplicative? Less efficient?
More efficient in achieving climate results?
Just an interim fix? A stepping stone?
Positives & Opportunities:
Support for national plans & capacity building
Where national and local plans exist – examples of donors
aligning behind these
Some “intermediary” funds – developed to be handed over once domestic systems ready
Consideration regional & global strategies and coordinated
efforts…
Trends:
• Background – Climate Finance Effectiveness: Paris & Busan.
– Rational for survey & approach
• Key insights from our survey– Common understanding on pre-conditions
– Areas of divergent views
• Summary
Introduction:
In summary:
Significant common ground on international climate finance - following aid
effectiveness principles and use of country systems
Key pre- conditions for effective climate finance and effective use of country
systems: National plans, readiness, co-ordination, stakeholder engagement and
tracking and monitoring of finance and results - very country and context specific
Significant timing & sequencing issue with climate finance – urgency scale up
finance and act on climate change vs. need to build capacity and readiness
High emphasis on donor accountability and tracking of climate finance &
implication that general budget support not always a feasible modality
Emergence of extra-budgetary NCFs – are these more or less effective? Private climate finance, new sources and instruments may require new
considerations. These are not always unique to climate finance – likely to be topic of debate in financing post-2015 development agenda…
THANK YOU!
For more information:
OECD DCD Environment and Development Homepage
www.oecd.org/dac/environment-development
OECD DAC-CRS: Methods and data on climate change financingwww.oecd.org/dac/stats/rioconventions.htm